Re: "Two problems with capital gains tax" (letter, thenewstribune.com).
The letter writer quotes without attribution an article about Connecticut’s economy from Investor’s Business Daily, a very conservative publication.
The argument is that Connecticut’s income tax, the third highest in the nation including increases over the years, has done nothing to solve its fiscal problems, According to the rabid anti-tax faction, there is a slippery slope - once a state adds an income tax, there will be more tax increases.
In an attempt to scare Washington voters about the proposed capital gains tax, the letter writer compares the economies of two very different states with different unemployment rates, different industries and geography, and different revenue streams.
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It is estimated that the state Senate's capital gains tax proposal, which is the tax on the profits of the sale of an asset, not income, would affect approximately 7,500 people. The House proposal at a different rate would affect 32,000 people.
Capital gains taxes are common — all but nine states have them, according to the Tax Foundation. Let’s be realistic. Washington state has one of the most regressive tax systems in the entire country. Give the low-income folks a break and modernize the state's revenue stream.